Loading...
HomeMy WebLinkAboutFlorida House of Representatives 2012FLORIDA HOUSE OF REPRESENTATIVES 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27, ,,28- HB 365 2012 A bill to be entitled An act relating to public employees; amending s. 112.18, F.S.; revising conditions under which certain firefighters, law enforcement officers, correctional officers, or correctional probations officers who suffer or have died from any of specified medical conditions are presumed to have been injured or killed accidentally and in the line of duty; revising the conditions under which the presumption with respect to disability due to any of specified diseases is against occurrence in the line of duty for purposes of workers' compensation claims; changing an evidentiary standard; amending s. 175.061, F.S.; providing duties of the board of trustees relating to the reporting of expenses and the operation under an administrative expense budget; amending s. 175.071, F.S.; revising requirements of the board relating to the employment of legal counsel, actuaries, and other advisers; amending s. 175.101, F.S.; providing for the discontinuation of excise taxes under certain conditions; amending s. 175.231, F.S.; providing medical conditions or behaviors that are appropriate for consideration in denying or overcoming the presumption of accidental disabilities or death suffered in the line of duty for firefighters; changing an evidentiary standard; amending s. 175.351, ,_F,..S .;. ,:revising provisions relating to benefits paid .from,thepremium tax by a municipality or,special fire - Page 1 of 30 CODING: Words stricken are deletions; words underlined are additions. hb0365-00 F L O R I D A' H O U S E O 'F REPRESENTATIVES 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 .55. H6.365 control district that has its own pension plan; providing definitions; providing a process for determining the allocation of the premium tax revenues to a supplemental plan; amending s. 175.361, F.S.; providing certain powers and responsibilities to municipalities and special fire control districts relating to termination of plans and distribution of funds; amending s. 185.02, F.S.; revising the definition of the term "compensation" or "salary" for purposes of police officers' pensions; amending s. 185.05, F.S.; authorizing a municipality to change the municipal representation of the board of trustees pursuant to certain requirements; providing duties of the board of trustees relating to the reporting of expenses and the operation under an administrative expense budget; amending s. 185.06, F.S.; revising requirements of the board relating to the employment of legal counsel, actuaries, and other advisers; amending s. 185.08, F.S.; providing for the discontinuation of excise taxes under certain conditions; amending s. 185.34, F.S.; providing medical conditions or behaviors that are appropriate for consideration in denying or overcoming the presumption of accidental disabilities or death suffered in the line of duty for police officers; changing an evidentiary standard; amending s. 185.35, F,.S ,revising_provisions relating 'to benefits.paid,b.y,., a municipality that has its own pension=plan;- Page 2of30 CODING: Words stricken are deletions; words underlined are additions. 2012 hb0365-00 FLORIDAHOUSE OF REPRESENTATIVES HB 365 2012 57 providing definitions; providing a process for 58 determining the allocation of the premium tax revenues 59 to a supplemental plan; amending s. 185.37, F.S.; 60 providing certain powers and responsibilities to 61 municipalities relating to termination of plans and 62 distribution of funds; providing a declaration of 63 important state interest; providing an effective date. 64 65 Be It Enacted by the Legislature of the State of Florida: 66 67 Section 1. Section 112.18, Florida Statutes, is. amended to 68 read: 69 112.18 Firefighters and law enforcement or correctional 70 officers; special provisions relative to disability.- 71 (1)(a) Any condition or impairment of health of any 72 Florida state, municipal, county, port authority, special tax 73 district, or fire control district firefighter or any law 74 enforcement officer, correctional officer, or correctional 75 probation officer as defined in s. 943.10(1), (2), or (3), who 76 has been employed by the current employer for at least 5 years 77 and who is less than 37 years of age, caused by tuberculosis, 78 heart disease, or hypertension resulting in total or partial 79 disability or death shall be presumed to have been accidental 80 and to,have been suffered in the line of duty unless the 81 contrary be shown by a preponderance of the c mpctcnt evidence. 82 However, any such firefighter, correctional officer, 83,correctional probation,_officer, or law en.for.cement,,officermust..... .,84 have_successfully:passed a physical examination upon entering Page 3 of 30 CODING: Words stricken are deletions; words underlined are additions. hb0365-00 F L `O R I D A . H O' U S E OF R E P R E S E N T A T I V E S 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 1,11. ;_q1-2 HB 365 2012 into any such service as a firefighter, correctional officer, correctional probation officer, or law enforcement officer, which examination failed to reveal any evidence of any such condition. Risk factors and epidemiological data relating to nonwork-related conditions unique to an individual, such as blood cholesterol, body mass index, history of tobacco and alcohol use, and other medical conditions or behaviors that are associated with the disease or condition subject to the presumption, are appropriate for consideration in denying or overcoming the presumption. Such presumption does not apply to benefits payable under or granted in a policy of life insurance or disability insurance, unless the insurer and insured have negotiated for such additional benefits to be included in the policy contract. (b)1. For any workers' compensation claim filed under this section and chapter 440 occurring on or after July 1, 2010, a firefighter, law enforcement officer correctional officer, or correctional probation officer as defined in s. 943.10(1), (2), or (3) suffering from tuberculosis, heart disease, or hypertension is presumed not to have incurred such disease in the line of duty as provided in this section.if the firefighter, law enforcement officer, correctional officer, or correctional probation officer: a. Departed in a material fashion from the prescribed course of treatment of his or her personal physician and the departure is demonstrated to have resulted in a significant ;aggravation of_the-tuberculosis, heart disease or hypertension:_.: resulting in:disability or increasing the disability or heed for Page 4 of 30 -CODING: Words stricken are deletions; words underlined are additions. hb0365-00 FLORIDA HOUSE O' F REPRESENTATIVES H B 365 2012 113 medical treatment; or 114 b. Was previously compensated pursuant to this section and 115 chapter 440 for tuberculosis, heart disease, or hypertension and 116 thereafter sustains and reports a new compensable workers' 117 compensation claim under this section and chapter 440, and the 118 firefighter, law enforcement officer, correctional officer, or 119 correctional probation officer has departed in a material 120 fashion from the prescribed course of treatment of an authorized 121 physician for the preexisting workers' compensation claim and 122 the departure is demonstrated to have resulted in a significant 123 aggravation of the tuberculosis, heart disease, or hypertension 124 resulting in disability or increasing the disability or need for 125 medical treatment. 126 2. As used in this paragraph, "prescribed course of 127 treatment" means prescribed medical courses of action and 128 prescribed medicines for the specific disease or diseases 129 claimed and as documented in the prescribing physician's medical 130 records. 131 3. If there is a dispute as to the appropriateness of the 132 course of treatment prescribed by a physician under sub- 133 subparagraph 1.a. or sub -subparagraph 1.b. or whether a 134 departure in a material fashion from the prescribed course of 135 treatment is demonstrated to have resulted in a significant 136 aggravation of the tuberculosis, heart disease, or hypertension 137 resulting in disability or increasing the disability or need for 138 medical treatment, the firefighter, law enforcement officer, _., , _139_ correctional —officer, or correctional probation-- officer, is ,entitled to seek an,yindependent medical examination pursuant to Page 5 of 30 _CODING: Words stricken are deletions; words underlined are additions. hb0365-00 FLORIDA HOUSE OF R E P •R E S E N T A T I V E S HB 365 2012 141 s. 440.13 (5) . 142 4. A firefighter, law enforcement officer, correctional 143 officer, or correctional probation officer is not entitled to 144 the presumption provided in this section unless a claim for 145 benefits is made prior to or within 180 days after leaving the 146 employment of the employing agency. 147 (2) This section authorizes each governmental entity 148 specified in subsection (1) to negotiate policy contracts for 149 life and disability insurance to include accidental death 150 benefits or double indemnity coverage which shall include the 151 presumption that any condition or impairment of health of any 152 firefighter, law enforcement officer, or correctional officer 153 caused by tuberculosis, heart disease, or hypertension resulting 154 in total or partial disability or death was accidental and 155 suffered in the line of duty, unless the contrary be shown by a 156 preponderance of the compctcnt evidence. 157 Section 2. Subsection (8) is added to section 175.061, 158 Florida Statutes, to read: 159 175.061 Board of trustees; members; terms of office; 160 meetings; legal entity; costs; attorney's fees. —For any 161 municipality, special fire control district, chapter plan, local 162 law municipality, local law special fire control district, or 163 local law plan under this chapter: 164 (8) The board of trustees shall: 165 (a) Provide a detailed accounting report of its expenses 166 for each fiscal year to the plan sponsor and the Department of 167.-.::,Management-Services-and make the report available to .every. 168 _;:member of -_theplan . The report must include, but heed not be Page 6 of 30 -CODING: Words stricken are deletions; words underlined are additions. hb0365-00 FLORIDA. HOUSE OF REPRESENYATIVES HB 365 2012 169 limited to, all administrative expenses that, for purposes of 170 this subsection, are expenses relating to any legal counsel, 171 actuary, plan administrator, and all other consultants, and all 172 travel and other expenses paid to or on behalf of the members of 173 the board of trustees or anyone else on behalf of the plan. 174 (b) Operate under an administrative expense budget for 175 each fiscal year, provide a copy of the budget to the plan 176 sponsor, and make available a copy of the budget to plan members 177 before the beginning of the fiscal year. The administrative 178 expense budget must regulate the administrative expenses of the 179 board of trustees. If the board of trustees amends the 180 administrative expense budget, the board must provide a copy of 181 the amended budget to the plan sponsor and make available a copy 182 of the amended budget to plan members before the amendment takes 183 effect. 184 Section 3. Subsection (7) of section 175.071, Florida 185 Statutes, is amended to read: 186 175.071 General powers and duties of board of trustees.- 187 For any municipality, special fire control district, chapter 188 plan, local law municipality, local law special fire control 189 district, or local law plan under this chapter: 190 (7) To assist the board in meeting its responsibilities 191 under this chapter, the board, if it so elects, and subject to 192 s. 175.061(8), may: 193 (a) Employ independent legal counsel at the pension fund's 194 expense. 195. (b) Employ an independent actuary,=as defined in 19.6 175.032(7), at the pension fund's expense:, Page 7 of 30 .CODING: Words stricken are deletions; words underlined are additions. hb0365-00 FLORIDA HOUSE O. F REPRESENTATIVES 197 198 HB 365 2012 (c) Employ such independent professional, technical, or other advisers as it deems necessary at the pension fund's 199 expense. 200 201 If the board chooses to use the municipality's or special 202 district's legal counsel or actuary, or chooses to use any of 203 the municipality's or special district's othcr professional, 204 technical, or other advisers, it must do so only under terms and 205 conditions acceptable to the board. 206 Section 4. Subsection (4) is added to section 175.101, 207 Florida Statutes, to read: 208 175.101 State excise tax on property insurance premiums 209 authorized; procedure. —For any municipality, special fire 210 control district, chapter plan, local law municipality, local 211 law special fire control district, or local law plan under this 212 chapter: 213 (4) If a municipality or special fire control district 214 revokes its participation under this chapter in accordance with 215 s. 175.411, the excise tax authorized by this section shall not 216 continue to be imposed on property insurance policies covering 217 property situated within the municipality or special fire 218 control district. 219 220 This section also applies to any municipality consisting of a 221 single consolidated government which is made up of a former 222 county and one or more municipalities, consolidated pursuant to. .223:: :the authority:_in s. 3 or s. 6 (e) Art. VII:I ofthe.,State._ 2Constitutionand -to property! insurancep olicies "covers ngr Page 8 of 30 :CODING: Words stricken are deletions; words underlined are additions. hb0365-00 FLORIDA HOUSE OF REPRESENTATIVES H B 365 2012 225 property within the boundaries of the consolidated government, 226 regardless of whether the properties are located within one or 227 more separately incorporated areas within the consolidated 228 government, provided the properties are being provided fire 229 protection services by the consolidated government. This section 230 also applies to any municipality, as provided in s. 231 175.041(3)(c), which has entered into an interlocal agreement to 232 receive fire protection services from another municipality 233 participating under this chapter. The excise tax may be levied 234 on all premiums collected on property insurance policies 235 covering property located within the corporate limits of the 236 municipality receiving the fire protection services, but will be 237 available for distribution to the municipality providing the 238 fire protection services. 239 Section 5. Section 175.231, Florida Statutes, is amended 240 to read: 241 175.231 Diseases of firefighters suffered in line of duty; 242 presumption. —For any municipality, special fire control 243 district, chapter plan, local law municipality, local law 244 special fire control district, or local law plan under this 245 chapter, any condition or impairment of health of a firefighter, 246 who has been employed by the current employer for at least 5 247 years and who is less than 37 years of age, caused by 248 tuberculosis, hypertension, or heart disease resulting in total 249 or partial disability or death shall be presumed to have been 250 accidental and suffered in the line of duty unless the contrary 251 , s,__shown 1by...a. preponderance of the compctcnt .evidence,:._provided'... y thatsuch firefighter shall have successfull passed a physical""s' Page9of30 ;CODING: Words f;tricken are deletions; words underlined are additions. hb0365-00 F L' O R I D A. H O U S E OF R E P R E S E NT A T I V E S 253 254 255 256 257 258 259 260 261 262 263 264 265 266 267 268 269 270 271 272 273 274 275 276 277 278 279 HB 365 2012 examination before entering into such service, which examination failed to reveal any evidence of such condition. Risk factors and epidemiological data relating to nonwork-related conditions unique to an individual, such as blood cholesterol, body mass index, history of tobacco and alcohol use, and other medical conditions or behaviors that are associated with the disease or condition subject to the presumption, are appropriate for consideration in denying or overcoming the presumption. This section shall be applicable to all firefighters only with reference to pension and retirement benefits under this chapter. Section 6. Section 175.351, Florida Statutes, is amended to read: 175.351 Municipalities and special fire control districts having their own pension plans for firefighters. —For any municipality, special fire control district, local law municipality, local law special fire control district, or local law plan under this chapter, in order for municipalities and special fire control districts with their own pension plans for firefighters, or for firefighters and police officers if included, to participate in the distribution of the tax fund established pursuant to s. 175.101, local law plans must meet the minimum benefits and minimum standards set forth in this chapter. (1) Notwithstanding any other provision, retirement benefits provided pursuant to this chapter and the use of the income from the premium tax in s. 175.101 must be determined and implemented in .accordance with, -the colle.cti-ve bargaining 'process, and --where collective, bargaining is : not • applicable,. Page 10 of 30 :.CODING: Words &tricker} are deletions; words underlined are additions. hb0365-00 FLORIDA'HOUSE O' F REPRESENTATIVS HB 365 2012 281 accordance with the pension plan, except as provided in 282 subsection (2). If the term of a collective bargaining agreement 283 ends without a new collective bargaining agreement in effect, 284 the retirement benefits of a plan operating pursuant to this 285 chapter shall revert to the minimum benefit provisions of this 286 chapter for the period of time from the end of the collective 287 bargaining agreement until the effective date of the subsequent 288 collective bargaining agreement, and the income from the premium 289 tax may be used for any retirement benefit provided pursuant to 290 this chapter as determined unilaterally by the municipality or 291 special fire control district. If a municipality has a pension 292 plan for fircfightcrs, or a pcnsion plan for fircfightcrs and 293 policc fficcrs if includcd, which in thc opinion of thc 294 division mccts thc minimum benefits and minimum standards set 295 e�th mn hi t-ems;, t e— Bard ef� ustee e Tepe rsien 296 plan, as approved by a maj rity of fircfightcrs of thc 297 municipality, may: 298 (a) Placc thc inc me from thc premium tax in s. 175.101 in 299 such pension plan f r thc c lc and exclusive use of its 300 fircfightcrs, or for fircfightcrs and policc officcrs if 301 includcd, where it. shall become an integral part of that. pcnsion 302 plan and shall be used to pay extra here -fits te.thc fircfightcrs 303 included in that pension plan; or 304--Plac-e thc i r c from thc p-rcatitiffl tax in s. 175.101 in 305 a separate supplemental plan to pay cxtra benefits to 306 fircfightcrs, r to fircfightcrs and policc officcrs if = 307 - g—in sue' tee--auppTe e ' 30.8 (_2.) The.._p.remi.um _.tax provided by thz�; chapter ;,hall in. all Page 11 of 30 CODING: Words stricken are deletions; words underlined are additions. hb0365-00 FLORIDA HOUSE OF R •E P R E S E N T A T I V E S HB 365 2012 309 cascs bc used in its cntircty to provide extra benefits t 310 311 included. For However, local law plans in effect on October 1, 312 1998, that do not must comply with the minimum benefit 313 provisions of this chapter, as only to the extent that 314 additional premium tax revenues become available, such revenues 315 shall be used to incrementally fund the cost of such compliance 316 as provided in s..175.162(2)(a). If a plan is in compliance with 317ouchm. ; mt cncfitpr-e sions, as subsequent additional 318 premium tax revenues become available, they must bc used t 319 pr vide extra benefits. Local law plans created by special act 320 before May 27, 1939, are deemed to comply with this chapter. For 321 the purpose of this chapter, the term= 322 (a) "additional premium tax revenues" means revenues 323 received by a municipality or special fire control district 324 pursuant to s. 175.121 which exceed that amount received for 325 calendar year 1997. Once a plan is in compliance with the 326 minimum benefit provisions of this chapter, the provisions of 327 subsection (1) apply. 328 (b) "Extra benefits" means benefits in addition to or 329 greater than.thosc provided to general employees f the 330 331 firefighters on March 12, 1999. 332 (3) A retirement plan or amendment to a retirement plan 333 may not be proposed for adoption unless the proposed plan or 334 amendment contains an actuarial estimate of the costs involved. :.335. __.The _ _Su_ch proposed, plan or proposed plan change may { 1336 ,adopted_: without _the approval _of the mun4cpal.ty,_ special fire Page 12 of 30 - ::CODING: Words stricken are deletions; words underlined are additions. hb0365-00 FLORIDA HOUSE OF R E P R E S E N 'T A T I V E S 337 338 339 340 341 342 343 344 345 346 347 348 349 350 351 352 353 354 355 356 357 358 359 360 361 362 363 364 HB 365 2012 control district, or, if required where permitted, the Legislature. Copies of the proposed plan or proposed plan change and the actuarial impact statement of the proposed plan or proposed plan change shall be furnished to the division before the last public hearing thereon. Such statement must also indicate whether the proposed plan or proposed plan change is in compliance with s. 14, Art. X of the State Constitution and those provisions of part VII of chapter 112 which are not expressly provided in this chapter. Notwithstanding any other provision, only those local law plans created by special act of legislation before May 27, 1939, are deemed to meet the minimum benefits and minimum standards only in this chapter. (4) Notwithstanding any other provision, with respect to any supplemental plan municipality: (a) A local law plan and a supplemental plan may continue to use their definition of compensation or salary in existence on March 12, 1999. (b) Section 175.061(1)(b) does not apply, and a local law plan and a supplemental plan shall continue to be administered by a board or boards of trustees numbered, constituted, and selected as the board or boards were numbered, constituted, and selected on December 1, 2000. (c) The election set forth in paragraph (1) (b) is deemed to have been made. (d) The annual amount of premium tax revenues allocated to the supplemental plan shall be determined through collective ,,.bargaining, where applicable, and in ae:c.ordance withthe.,pension,. phan.mhere collective- bargaining does not apply _ If the_ term of Page 13 of 30 .-- CODING: Words 6tricken are deletions; words underlined are additions. hb0365-00 FLORIDA HOUSE OF REPRESENTATIVES HB365 2012 365 a collective bargaining agreement ends without a new collective 366 bargaining agreement in effect, the amount.of premium tax 367 revenues allocated to the supplemental plan shall be determined 368 unilaterally by the municipality or special fire control 369 district for the period of time from the end of the collective 370 bargaining agreement until the effective date of the subsequent 371 collective bargaining agreement. 372 (5) The retirement plan setting forth the benefits and the 373 trust agreement, if any, covering the duties and 374 responsibilities of the trustees and the regulations of the 375 investment of funds must be in writing, and copies made 376 available to the participants and to the general public. 377 (6) A municipality or special fire control district may 378 unilaterally establish one or more new plans, or benefit levels 379 within a plan, which provide different benefit levels for plan 380 members based on the member's date of hire if the new plan or 381 benefit level provides pension benefits that, in the aggregate, 382 meet or exceed the minimum benefits set forth in this chapter, 383 as determined by the plan's or employer's actuary. A 384 municipality or special fire control district may unilaterally 385 elect to maintain. an existing plan and join the Florida 386 Retirement System or establish a defined contribution retirement 387 plan for employees hired after a specified date. A municipality 388 or special fire control district choosing to operate under this 389 subsection shall use the premium tax provided under this chapter 390 391 for the current plan or benefit level, for any additional plan or. benefit...,level, f.or-:contributions to °.the;Fl:orida-'Retirement- Page 14 of 30 CODING: Words stricken are deletions; words underlined are additions. hb0365-00 F L O R' I D A H O U S rE OF REPHRESENTATIVES HB 365 2012 392 System, or for contributions to. a defined contribution 393 retirement plan. 394 Section 7. Section 175.361, Florida Statutes, is amended 395 to read: 396 175.361 Termination of plan and distribution of fund. —For 397 any municipality, special fire control district, chapter plan, 398 local law municipality, local law special fire control district, 399 or local law plan under this chapter, the plan may be terminated 400 by the municipality or special fire control district. Upon 401 termination of the plan by the municipality or special fire 402 control district for any reason or because of a transfer, 403 merger, or consolidation of governmental units, services, or 404 functions as provided in chapter 121, or upon written notice by 405 the municipality or special fire control district to the board 406 of trustees that contributions under the plan are being 407 permanently discontinued, the rights of all employees to 408 benefits accrued to the date of such termination and the amounts 409 credited to the employees' accounts are nonforfeitable. The fund 410 shall be distributed in accordance with the following 411 procedures: 412 (1) The board of trustees, subject to prior written 413 approval of the municipality or special fire control district, 414 shall determine the date of distribution and the asset value 415 required to fund all the nonforfeitable benefits after taking 416 into account the expenses of such distribution. The board shall 417 inform the municipality or special fire control district if 418 additional assets :,are : required, in which event _ the municipality ._ -or-.special-fire-.control district shall Page 15 of 30 CODING: Words stricken are deletions; words underlined are additions. hb0365-00 FLORIDA. HOUSE OF REPRESENTATIVES HB 365 2012 420 support the plan until all nonforfeitable benefits have been 421 funded. 422 (2) The board of trustees, subject to prior written 423 approval of the municipality or special fire control district, 424 shall determine the method of distribution of the asset value, 425 whether distribution shall be by payment in cash, by the 426 maintenance of another or substituted trust fund, by the 427 purchase of insured annuities, or otherwise, for each 428 firefighter entitled to benefits under the plan as specified in 429 subsection (3). 430 (3) The board of trustees, subject to prior written 431 approval of the municipality or special fire control district, 432 shall distribute the asset value as of the date of termination 433 in the manner set forth in this subsection, on the basis that 434 the amount required to provide any given retirement income is 435 the actuarially computed single -sum value of such retirement 436 income, except that if the method of distribution determined 437 under subsection (2) involves the purchase of an insured 438 annuity, the amount required to provide the given retirement 439 income is the single premium payable for such annuity. The 440 actuarial single -sum value may not be less than the employee's 441 accumulated contributions to the plan, with interest if provided 442 by the plan, less the value of any plan benefits previously paid 443 to the employee. 444 (4) If there is asset value remaining after the full 445 distribution specified in subsection (3), and after the payment :..446 .-:of:;any_;expenses incurred with such distribution,:such excess-: 4;47 shall ._be . retur-ned - to the municipality 0-et Page 16 of 30 ;CODING: Words striskeR are deletions; words underlined are additions. hb0365-00 FLORIDA' HOUSE OF R E P R E S' E N T A T I V E S HB 365 2012 448 district, less return to the state of the state's contributions, 449 provided that, if the excess is less than the total 450 contributions made by the municipality or special fire control 451 district and the state to date of termination of the plan, such 452 excess shall be divided proportionately to the total 453 contributions made by the municipality or special fire control 454 district and the state. 455 (5) The board of trustees, subject to prior written 456 approval of the municipality or special fire control district, 457 shall distribute, in accordance with subsection (2), the amounts 458 determined under subsection (3). 459 460 If, after 24 months after the date the plan terminated or the 461 date the board received written notice that the contributions 462 thereunder were being permanently discontinued, the municipality 463 or special fire control district or the board of trustees of the 464 firefighters' pension trust fund affected has not complied with 465 all the provisions in this section, the Department of Management 466 Services shall effect the termination of the fund in accordance 467 with this section and in the manner having the least fiscal 468 impact on the municipality or special fire control district. 469 Section 8. Subsection (4) of section 185.02, Florida 470 Statutes, is amended to read: 471 185.02 Definitions. —For any municipality, chapter plan, 472 local law municipality, or local law plan under this chapter, 473 the following words and phrases as used in this chapter shall ,474 have._thefollowing meanings, unless a different meaning. -.is, 475 plainly required by the context: Page 17 of 30 :: V CODING: Words stri4en are deletions; words underlined are additions. hb0365-00 FLORIDA H O U S E OF REPTZESENTATIVES 476 477 478 479 480 481 482 483 484 485 486 487 488 489 490 491 492 493 494 495 496 497 498 499 500 501 502. 503 HB 365 2012 (4) "Compensation" or "salary" means, for noncollectively bargained service earned before July 1, 2011, or for service earned under collective bargaining agreements in place before July 1, 2011, the total cash remuneration including overtime'—' paid by the primary employer to a police officer for services rendered, but not including any payments for extra duty or special detail work performed on behalf of a second party employer. A local law plan may limit the amount of overtime payments which can be used for retirement benefit calculation purposes; h wcvcr, such overtime limit may n t be less than 300 hours per officer per calendar year. For noncollectively bargained service earned on or after July 1, 2011, or for service earned under collective bargaining agreements entered into on or after July 1, 2011, the term has the same meaning except that when calculating retirement benefits, up to 300 hours per year in overtime compensation may be included as specified in the plan or collective bargaining agreement, but payments for accrued unused sick or annual leave may not be included. (a) Any retirement trust fund or plan that meets the requirements of this chapter does not, solely by virtue of this subsection, reduce, or diminish the monthly retirement income otherwise payable to each police officer covered by the retirement trust fund or plan. (b) The member's compensation or.salary contributed as .employee -elective salary reductions or deferrals to any salary ,reduction,, deferr,ed.compensation, or taxsheltered annuity pr.ogramauthorized under the Internal Revenue:Code shall be Page 18 of 30 _CODING: Words stris are deletions; words underlined are additions. hb0365-00 FLORIDA. HOUSE OF REPRESENTATIVES 504 505 506 507 508 509 510 511 512 513 514 515 516 517 518 519 520 521 522 523 524 525 526 527 528 529 :53.0„ 53-1 ,HB 365 2012 deemed to be the compensation or salary the member would receive if he or she were not participating in such program and shall be treated as compensation for retirement purposes under this chapter. (c) For any person who first becomes a member in any plan year beginning on or after January 1, 1996, compensation for that plan year may not include any amounts in excess of the Internal Revenue Code s. 401(a) (17) limitation, as amended by the Omnibus Budget Reconciliation Act of 1993, which limitation of $150,000 shall be adjusted as required by federal law for qualified government plans and shall be further adjusted for changes in the cost of living in the manner provided by Internal Revenue Code s. 401(a) (17) (B). For any person who first became a member before the first plan year beginning on or after January 1, 1996, the limitation on compensation may not be less than the maximum compensation amount that was allowed to be taken into account under the plan as in effect on July 1, 1993, which limitation shall be adjusted for changes in the cost of living since 1989 in the manner provided by Internal Revenue Code s. 401 (a) (17) (1991) . Section 9. Subsection (8) is added to section 185.05, Florida Statutes, to read: 185.05 Board of trustees; members; terms of office; meetings; legal entity; costs; attorney's fees. —For any municipality, chapter plan, local law municipality, or local law plan under this chapter: (8) Theboardof trustees shall: (a)_ :Provide;. a detailed accounting::report,.._of , t,s ,expenses Page 19 of 30 CODING: Words stricken are deletions; words underlined are additions. hb0365-00 FLORIDA HOUSE 'OF R E P R E S E N T A T I V E S HB365 2012 532 for each fiscal year to the plan sponsor and the Department of 533 Management Services and make the report available to every 534 member of the plan. The report must include, but need not be 535 limited to, all administrative expenses that, for purposes of 536 this subsection, are expenses relating to any legal counsel, 537 actuary, plan administrator, and all other consultants, and all 538 travel and other expenses paid to or on behalf of the members of 539 the board of trustees or anyone else on behalf of the plan. 540 (b) Operate under an administrative expense budget for 541 each fiscal year, provide a copy of the budget to the plan 542 sponsor, and make available a copy of the budget to plan members 543 before the beginning of the fiscal year. The administrative 544 expense budget must regulate the administrative expenses of the 545 board of trustees. If the board of trustees amends the 546 547 548 549 550 551 552 553 554 555 556 557 558 559 administrative expense budget, the board must provide a copy of the amended budget to the plan sponsor and make available a copy of the amended budget to plan members before the amendment takes effect. Section 10. Subsection (6) of section 185.06, Florida Statutes, is amended to read: 185.06 General powers and duties of board of trustees. —For any municipality, chapter plan, local law municipality, or local law plan under this chapter: (6) To assist the board in meeting its responsibilities under this chapter, the board, if it so elects, and subject to s. 185.05(8), may: (a) Empl.oy.independent legal counsel at the pension fund's.� expense; Page 20 of 30 .CODING: Words stricken are deletions; words underlined are additions: hb0365-00 FLORIDA HOUSE OF REPRESENTAT IVES 560 561 562 563 564 565 566 567 568 569 570 571 572 573 574 575 576 577 578 579 580 581 582 583 584 585 586 587. HB 365 2012 (b) Employ an independent actuary, as defined in s. 185.02(8), at the pension fund's expense. (c) Employ such independent professional, technical, or other advisers as it deems necessary at the pension fund's expense. If the board chooses to use the municipality's or special district's legal counsel or actuary, or chooses to use any of the municipality's other professional, technical, or other advisers,.it must do so only under terms and conditions acceptable to the board. Section 11_. Subsection (4) is added to section 185.08, Florida Statutes,,to read: 185.08 State excise tax on casualty insurance premiums authorized; procedure. —For any municipality, chapter plan, local law municipality, or local law plan under this chapter: (4) If a municipality revokes its participation under this chapter in accordance with s. 185.60, the excise tax authorized by this section shall not continue to be imposed on casualty insurance policies covering property situated within the municipality. Section 12. Section 185.34, Florida Statutes, is amended to read: 185.34 Disability in line of duty. —For any municipality, chapter plan, local law municipality, or local law plan under this chapter, any condition or impairment of health of any and .,police,.off.i.cer.-,o.fficcrs employed in the state, who has. -been ,employed:bv the current employer for at,;.le_ast,,,_.5...,,years: Page 21 of 30 CODING: Words stricken are deletions; words underlined are additions. hb0365-00 FLORIDA HOUSE OF REPRESENTATIVES HB365 2012 588 less than 37 years of age, caused by tuberculosis, hypertension, 589 heart disease, or hardening of the arteries, resulting in total 590 or partial disability or death, shall be presumed to be 591 accidental and suffered in line of duty unless the contrary be 592 shown by a preponderance of the competent evidence. Any 593 condition orimpairment of health caused directly or proximately 594 by exposure, which exposure occurred in the active performance 595 of duty at some definite time or place without willful 596 negligence on the part of the police officer, resulting in total 597 or partial disability, shall be presumed to be accidental and 598 suffered in the line of duty, provided that such police officer 599 shall have successfully passed a physical examination upon 600 entering such service, which physical examination including 601 electrocardiogram failed to reveal any evidence of such 602 condition, and, further, that such presumption shall not apply 603 to benefits payable under or granted in a policy of life 604 insurance or disability insurance. Risk factors and 605 epidemiological data relating to nonwork-related conditions 606 unique to an individual, such as blood cholesterol, body mass 607 index, history of tobacco and alcohol use, and other medical 608 conditions or behaviors that are associated with the disease or 609 condition subject to the presumption, are appropriate for 610 consideration in denying or overcoming the presumption. This 611 section shall be applicable to all police officers only with 612 reference to pension and retirement benefits under this chapter. 613 Section 13. Section 185.35, Florida Statutes, is amended 614 to read.: •185._35 - ,Municipalities having their..,o-wn .-pension. plans• -for • Page 22 of 30. CODING: Words stricken are deletions; words underlined are additions. hb0365-00 FLORIDA H O U S. E 'OF REPRESENTATIVES HB 365 2012 616 police officers. —For any municipality, chapter plan, local law 617 municipality, or local law plan under this chapter, in order for 618 municipalities with their own pension plans for police officers, 619 or for police officers and firefighters if included, to 620 participate in the distribution of the tax fund established 621 pursuant to s. 185.08, local law plans must meet the minimum 622 benefits and minimum standards set forth in this chapter.= 623 (1) Notwithstanding any other provision, retirement 624 benefits provided pursuant to this chapter and the use of the 625 income from the premium tax in s. 185.08 must be determined and 626 implemented in accordance with the collective bargaining 627 process, and where collective bargaining is not applicable, in 628 accordance with the pension plan, except as provided in 629 subsection (2). If the term of a collective bargaining agreement 630 ends without a new collective bargaining agreement in effect, 631 the retirement benefits of a plan operating pursuant to this 632 chapter shall revert to the minimum benefit provisions of this 633 chapter for the period of time from the end of the collective 634 bargaining agreement until the effective date of the subsequent 635 collective bargaining agreement, and the income from the premium 636 tax may be used f.or any retirement benefit provided pursuant to 637 this chapter as determined unilaterally by the municipality. If 638 a municipality has a pension plan f r police fficcrs, or for 639 police officers and firefighters if included, which, in thc 640 opinion of thc division, mccts thc minimum benefits and minimum 641 pen,�.ion ,.plan, ao. approved by a majority f p li.cc_.officcro_ 643 of thc municipality, may: Page 23 of 30 CODING: Words stricken are deletions; words underlined are additions. hb0365-00 FLORIDA HOUSE OF .R E FP R E S E N T A T I V E S 644 HB 365 2012 (a) Place the income from the p-rcmium tax in . 185.08 in 645 646 officcro, or its p lice officers and firefighters if included, 647 where it shall bcc me an integral part of that pension plan and 648 shall be used to pay cxtra benefits to thc policc fficcro 649 includcd in that pcnoion plan; or 650 (b) May place thc income from thc prcmium tax in s. 185.08 651 in a separate supplemental plan to pay extra benefits to thc 652 policc fficers, or p licc officers and firefighters if 653 includcd, participating in such separate supplemental plan. 654 (2) The prcmium tax provided by this chapter shall in all 655 cases bc used in its cntircty to pr vidc cxtra benefits to 656 policc officers, or to policc fficers and firefighters if 657 includcd. For However, local law plans in effect on October 1, 658 1998, that do not must comply with the minimum benefit 659 provisions of this chapter, as only t thc extent that 660 additional premium tax revenues become available, such revenues 661 shall be used to incrementally fund the cost of such compliance 662 as provided in s. 185.16(2). If a plan is in c mpliancc with 663 such minimum benefit pr visions, as subsequent additional tax 664 revenues become available, they shall bc used to provide cxtra 665 benefits. Local law plans created by special act before May 27, 666 1939, shall be deemed to comply with this chapter. For the 667 purpose of this chapter, the term= 668 (a) "additional premium tax revenues" means revenues 669 received by a municipality pursuant to s. 185.10 which exceed 6.70 the amount received.,for calendar. year 1.997- Once a ;plan•is_ in ,67:1 ,compliance with_ the_ minimum benefit provisions of`this chapter, Page 24 of 30 -CODING: Words stricken are deletions; words underlined are additions.: hb0365-00 FLORIDAHOUSE O F R E P R E S E *N T A T I V E S HB 365 2012 672 the provisions of subsection (1) apply. 673 (b) "Extra benefits" m ans benefits in addition to or 674 675 676 officers n March 12, 1999. 677 (3) A retirement plan or amendment to a retirement plan 678 may not be proposed for adoption unless the proposed plan or 679 amendment contains an actuarial estimate of the costs involved. 680 The Such proposed plan or proposed plan change may not be 681 adopted without the approval of the municipality or, if required 682 where permitted, the Legislature. Copies of the proposed plan or 683 proposed plan change and the actuarial impact statement of the 684 proposed plan or proposed plan change shall be furnished to the 685 division before the last public hearing thereon. Such statement 686 must also indicate whether the proposed plan or proposed plan 687 change is in compliance with s. 14, Art. X of the State 688 Constitution and those provisions of part VII of chapter 112 689 which are not expressly provided in this chapter. 690 Notwithstanding any other provision, only those local law plans 691 created by special act of legislation before May 27, 1939, are 692 deemed to meet the minimum benefits and minimum standards only 693 in this chapter. 694 (4) Notwithstanding any other provision, with respect to 695 any supplemental plan municipality: 696 (a) Sccti n 185.02(4) (a) does not apply, and A local law 697 plan and a supplemental plan may continue to use their _ 69,$ definition ..of :compensation or salary inexistence on March.'.; 699 1999. Page25of30 CODING: Words str+ekee are deletions; words underlined are additions. hb0365-00 FLORIDA HOUSEOF REPRESENTATIVES HB 365 2012 700 (b) Section.185.05(1)(b) does not apply, ,and a local law 701 plan and a supplemental plan must continue to be administered by 702 a board or boards of trustees numbered, constituted, and 703 selected as the board or boards were numbered, constituted, and 704 selected on December 1, 2000. .705 (c) The election set forth in paragraph (1)(b) is deemed 706 to have been made. 707 (d) The annual amount of premium tax revenues allocated to 708 the supplemental plan shall be determined through collective 709 bargaining, where applicable, and in accordance with the pension 710 plan where collective bargaining does not apply. If the term of 711 a collective bargaining agreement ends without a new collective 712 bargaining agreement in effect, the amount of premium tax 713 revenues allocated to the supplemental plan shall be determined 714 unilaterally by the municipality for the period of time from the 715 end of the collective bargaining agreement until the effective 716 date of the subsequent collective bargaining agreement. 717 (5) The retirement plan setting forth the benefits and the 718 trust agreement, if any, covering the duties and 719 responsibilities of the trustees and the regulations of the 720 investment of funds must be in writing and copies made available 721 to the participants and to the general public. 722 723 724 725 72.6 benefits ..that, ,;.in the. aggregate, meet orexceed t-he'. minimum'• r_7,27 _,`.benefi-ts .. set -forth in this chapter, as determined, by the plan's page 26 of 30 -CODING: Words tricker} are deletions; words underlined are additions. (6) A municipality may unilaterally establish one or more new plans, or benefit levels within a plan, which provide different benefit levels for plan members based on the member's date of hire if the new plan or benefit level provides pension hb0365-00 FLORDAIHOUSE OF REPRESENTATIVESS 728 729 730 731 732 733 734 735 736 737 738 739 740 741 742 743 744 745 746 747 748 749 750 751 752 753 HB 365 2012 or employer's actuary. A municipality may unilaterally elect to maintain an existing plan and join the Florida Retirement System or establish a defined contribution retirement plan for employees hired after a specified date. A municipality choosing to operate under this subsection shall use the premium tax provided under this chapter for the current plan or benefit level, for any additional plan or benefit level, for contributions to the Florida Retirement System, or for contributions to a defined contribution retirement plan. Section 14. Section 185.37, Florida Statutes, is amended to read: 185.37 Termination of plan and distribution of fund. —For any municipality, chapter plan, local law municipality, or local law plan under this chapter, the plan may be terminated by the municipality. Upon termination of the plan by the municipality for any reason, or because of a transfer, merger, or consolidation of governmental units, services, or functions as provided in chapter 121, or upon written notice to the board of trustees by the municipality that contributions under the plan are being permanently discontinued, the rights of all employees to benefits accrued to the date of such termination or discontinuance and the amounts credited to the employees' accounts are nonforfeitable. The fund shall be distributed in accordance with the following procedures: (1) The board of trustees, subject to prior written approval of the municipality, shall determine the date of distribution and the asset value require.d. o fund- all the nonforfeitable benefitafter taking into account the expenses • Page 27of30. CODING: Words stricken are deletions; words underlined are additions. hb0365-00 FLORIDA HOUSE OF REPRESENTATIVES .H13365 2012 756 of such distribution. The board shall inform the municipality if 757 additional assets are required, in which event the municipality 758 shall continue to financially support the plan until all 759 nonforfeitable benefits have been funded. 760 (2) The board of trustees, subject to prior written 761 approval of the municipality, shall determine the method of 762 distribution of the asset value, whether distribution shall be 763 by payment in cash, by the maintenance of another or substituted 764 trust fund, by the purchase of insured annuities, or otherwise, 765 for each police officer entitled to benefits under the plan, as 766 specified in subsection (3). 767 (3) The board of trustees, subject to prior written 768 approval of the municipality, shall distribute the asset value 769 as of the date of termination in the manner set forth in this 770 subsection, on the basis that the amount required to provide any 771 given retirement income is the_actuarially computed single -sum 772 value of such retirement income, except that if the method of 773 distribution determined under subsection (2) involves the 774 purchase of an insured annuity, the amount required to provide 775 the given retirement income is the single premium payable for 776 such annuity. The actuarial single -sum value may_ not be less 777 than the employee's accumulated contributions to the plan, with 778 interest if provided by the plan, less the value of any plan 779 benefits previously paid to the employee. 780 (4) If there is asset value remaining after the full 781 distribution specified in subsection (3), and after payment of 782,anyexpenses incurredwith such distribut:ions.uch e.xoesss:hall':.._ 7,8.3, .be ; returned -to ::the._.munic pality, less return. to the state of ,the Page 28of30 :_CODING: Words ctricken are deletions; words underlined are additions. hb0365-00 FLORIDA H 0 U S. E 'O F R E P R E S E N T A T I V E S HB 365 2012 784 state's contributions, provided that, if the excess is less than 785 the total contributions made by the municipality and the state .786 to date of termination of the plan, such excess shall be divided 787 proportionately to the total contributions made by the 788 municipality and the state. 789 (5) The board of trustees, subject to prior written 790 approval of the municipality, shall distribute, in accordance 791 with the manner of distribution determined under subsection (2), 792 the amounts determined under subsection (3). 793 794 If, after 24 months after the date the plan terminated or the 795 date the board received written notice that the contributions 796 thereunder were being permanently discontinued, the municipality 797 or the board of trustees of the municipal police officers' 798 retirement trust fund affected has not complied with all the 799 provisions in this section, the Department of Management 80.0 Services shall effect the termination of the fund in accordance 801 with this section and in the manner having the least fiscal 802 impact on the municipality. 803 Section 15. The Legislature finds that a proper and 804 legitimate state purpose is served when employees and retirees 805 of the state and its political subdivisions, and the dependents, 806 survivors, and beneficiaries of such employees and retirees are 807 extended the basic protections afforded by governmental 808 retirement systems that provide fair and adequate benefits and 809 that are managed, administered, and funded in an actuarially 8.10_ sound.man,ner;as_required by s. 14, Art -X--of:the---State_ 8,11, Constitution, -and, -part VII of chapter 112, Florida Statutes:._ • Page 29 of 30 ;.CODING: Words stricken are deletions; words underlined are additions. hb0365-00 F LORR IDA HOUSE OF REPR E S E N T A T I V E S 812 813 814 HB 365 2012 Therefore, the Legislature determines and declares that this act fulfills an important state interest. Section 16. This act shall take effect July 1, 2012. Page 30 of 30 = CODING: Words stricken are deletions; words underlined are additions. hb0365-00